Asset Management Skills:

Asset Managers must be real estate generalists. This profession requires the development of a broad range of skills, some of which are described below.

A. Negotiating.

Asset Managers need to be able to negotiate as actions are taken or decisions made. Negotiation skills result in generally less time consuming and more effective results being achieved. Asset Managers should try to gain voluntary cooperation from owners and lenders to comply with program requirements when possible. 

B. Legal.

Asset Managers need to be conversant with the legal requirements and terms used in the industry. They should be able to read and understand the statutes and regulations that establish policy and requirements. Asset managers need to be able to understand and apply the provisions of Regulatory Agreements, mortgages, notes, leases, etc. However, Asset Managers should never attempt to provide legal advice, explanations, or interpretations of statutes or regulations. When legal expertise is needed, the Asset Manager should arrange for an attorney to be present during meetings or to concur on correspondence when appropriate.

C. Architectural / Engineering / Construction.

Asset Managers are not expeced to be architects, engineers, or construction analysts or to provide architectural/engineering advice, but they should have a working knowledge of building construction, structures, building components, and building and construction terminology in order to conduct physical inspections of projects and to evaluate reserve funds, replacements costs, rehabb loan applications, etc.

D. Financial Analysis and Accounting.

Asset Managers need strong skills in the financial area, because many decisions are based on applications of quantitative methods and procedures.

E. Appraisal.

Asset Managers should have a general understanding covering appraisals and have an appreciation for the principles that determine property values.

F. Taxation.

Asset Managers should have an awareness of the effects of property and income taxes on project performance and on the communities in which projects are located. Property tax assessment appeals are a key ingredient to improving the project's bottom line. NWF Realty, Inc. also provides this service as a stand alone benefit to property owners. Please see Property Tax Appeals.

G. Economics and Marketing.

Asset Managers need to understand the various forces at work in the marketplace, including the local supply of and demand for housing, the health of the economy (local, regional, and national), employment trends, and overall demands for capital and trends in financial markets.

H. Insurance.

Asset Managers should be able to analyze a project's insurance needs and requirements.

I. Property Management.

Asset Managers must be able to evaluate all aspects of the management of a project and be able to provide owners and managing agents help and assistance to assure effective management.

J. Exit strategy and disposition analysis.

Asset managers assist the property owner in developing a viable exit strategy. While the Asset Manager may be a licensed real estate broker, in some circumstances, additional marketing could prove invaluable to gain exposure for the asset on a regional or national level. The Asset Manager maintains relationships with the larger brokerage firms and advises on market timing and pricing for a successful disposition.

K. Business Judgment.

Perhaps most important of all, Asset Managers must have a deep knowledge and appreciation of the real estate business environment, of what it is like to have to make payroll, pay vendors, pay insurance premiums, make mortgage payments, pay returns to investors in mortgage companies and projects, and deal with government regulations and requirements that come from all levels of government. Without this understanding, asset management efforts will almost certainly not succeed. In addition, Asset Managers need to use good judgment along with a high degree of skill in using logic and creative problem solving.

 Asset management services also include the following services:

• Eviction Coordination
• Redemption/Confirmation Management
• Cash-for-Relocation
• Property Preservation and Inspections
• Insurance Claim Management
• Administration and Payment of Property Taxes and Home Owner Association Dues
• Repair Management
• Title Evaluation and Coordination
• Marketing Review and Management Through Approved Broker Network
• Offer Negotiation
• Closing and Escrow Management